“We're trying to optimise the service we offer our customers by bringing together the two market-leading businesses to create the best of breed. We want to be the very best,” said Xeretec group production director Warren Beard.

The deal was signed on 30 April and has created an organisation with sales of £57m, 220 staff and 11 offices across the UK and Ireland. Around 85 BDS staff will transfer to Xeretec.

Xeretec would not comment on the value of the deal.

This latest acquisition follows Xeretec’s purchase of ROI Digital last month.

Beard said the Bytes deal, its largest to date, is the cornerstone of the firm’s five-year plan to become a £100m business.

“We'll definitely be looking to make further acquisitions. We will be growing organically too – that's very important as it shows you've got it right, but we'll always remain acquisitive,” he said.

BDS will retain its name for around six months before being incorporated into Xeretec and BDS customers will continue to be served by their existing offices. 

"The locations are very complementary, so there's little duplication, except in London where we'll be looking to consolidate into a single office," added Beard.

BDS was owned by Bytes Technology Group (BTG) and group managing director Neil Murphy said the sale of its Xerox reselling arm would enable BTG to focus on its core software business, where it partners with developers including Microsoft, Symantec, Citrix and Oracle.

“The Bytes Group intends to invest further in its software and software services capabilities. Importantly, we will work in close partnership with Xeretec moving forward to ensure customer satisfaction is our number-one priority,” Murphy said in a statement.